{"id":6738,"date":"2022-06-29T15:07:13","date_gmt":"2022-06-29T20:07:13","guid":{"rendered":"https:\/\/nwfl4sale.com\/new-homes-could-falling-costs-offset-higher-rates\/"},"modified":"2022-06-29T15:07:13","modified_gmt":"2022-06-29T20:07:13","slug":"new-homes-could-falling-costs-offset-higher-rates","status":"publish","type":"post","link":"https:\/\/nwfl4sale.com\/new-homes-could-falling-costs-offset-higher-rates\/","title":{"rendered":"New Homes: Could Falling Costs Offset Higher Rates?"},"content":{"rendered":"
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The cost of lumber is falling and new-home demand softening thanks to current housing prices and rising interest rates. Could a supply-demand balance be here soon?<\/span><\/span><\/p>\n<\/div>\n CHICAGO \u2013 The National Association of Home Builders (NAHB) speculates that price increases in construction materials will cool down as housing demand slows amid climbing interest rates.<\/span><\/span><\/p>\n It cites the \u201cmercurial fall\u201d in framing lumber prices as a possible sign, although NAHB chief economist Robert Dietz says broader and more significant price drops for building materials cannot wholly rely on rising interest rates.<\/span><\/span><\/p>\n \u201cWhile the [U.S. Federal Reserve] can cool the demand-side of the economy [reducing inflation and growth], additional output on the supply-side is required in order to tame the growth in costs that we see in housing and other sectors of the economy,\u201d he says.<\/span><\/span><\/p>\n However, indicators don\u2019t signal a price drop in the cost of other residential materials. Procopio Companies CEO Michael Procopio expects continued long-term appreciation, with drywall, steel, concrete and trusses still on the rise.<\/span><\/span><\/p>\n \u201cIt\u2019s likely that with the current housing shortage, continued demand for materials, inflation and supply-chain issues, we will not see a substantial decrease in pricing, if any, in the coming weeks and months,\u201d Procopio says. <\/span><\/span><\/p>\n Meanwhile, BrightView Landscape Development President Tom Donnelly says sitework-related inputs like asphalt and concrete prices aren\u2019t softening, with a minimum 8% to 10% year-over-year increase in PVC pipe and related components pricing anticipated.<\/span><\/span><\/p>\n Northwind Group founder Ran Eliasaf says price falls in lumber and certain other materials are offset by record hikes for cement and concrete product manufacturing, steel and aluminum.<\/span><\/span><\/p>\n